Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company's production schedule for May: Work-in-Process Inventory, May 1 Tons of Pulp 5,000 Percent Completed Materials Conversion 100% 50% Started during May 12,000 Units to account for 17,000 Units from beginning Work-in-Process, which were completed and transferred out during May 5,000 Started and completed during May 7,200 Work-in-Process Inventory, May 31 Total units accounted for 4,800 17,000 100% 50% The following cost data are available: Work-in-Process Inventory, May 1 Direct materials Conversion Costs incurred during May Direct materials Conversion Required: $ 73,690 23,494 188,280 315,810 1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method. 2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method. Equivalent Units Direct Materials Conversion 17,000 14,600 < Required 1 Required 2 >
Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company's production schedule for May: Work-in-Process Inventory, May 1 Tons of Pulp 5,000 Percent Completed Materials Conversion 100% 50% Started during May 12,000 Units to account for 17,000 Units from beginning Work-in-Process, which were completed and transferred out during May 5,000 Started and completed during May 7,200 Work-in-Process Inventory, May 31 Total units accounted for 4,800 17,000 100% 50% The following cost data are available: Work-in-Process Inventory, May 1 Direct materials Conversion Costs incurred during May Direct materials Conversion Required: $ 73,690 23,494 188,280 315,810 1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method. 2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method. Equivalent Units Direct Materials Conversion 17,000 14,600 < Required 1 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing
system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are
incurred uniformly throughout the process. This is the company's production schedule for May:
Work-in-Process Inventory, May 1
Tons of Pulp
5,000
Percent Completed
Materials
Conversion
100%
50%
Started during May
12,000
Units to account for
17,000
Units from beginning Work-in-Process, which were completed
and transferred out during May
5,000
Started and completed during May
7,200
Work-in-Process Inventory, May 31
Total units accounted for
4,800
17,000
100%
50%
The following cost data are available:
Work-in-Process Inventory, May 1
Direct materials
Conversion
Costs incurred during May
Direct materials
Conversion
Required:
$ 73,690
23,494
188,280
315,810
1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method.
2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method.
Equivalent
Units
Direct Materials
Conversion
17,000
14,600
< Required 1
Required 2 >
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